I think references have a place in hiring. It is surprising what a reference reveal about your applicant. As a pre-screen, it is also a red flag if the applicant is unable to produce at least a few people who could say something nice about them.

Reference checks are about the questions. The best questions are open-ended. For example: Please give me 3 words that describe this person's work style? Also questions like, are you aware of any limitations that may prevent this person from doing this job? Or Have you ever observed the applicant in a stressful situation? How did they handle it?

You evaluate a reference check based on the job description. What do the answers reveal about this person and how they fit with the position?